Investor Presentation • Jul 27, 2021
Investor Presentation
Open in ViewerOpens in native device viewer
July 27, 2021
The information contained in this presentation has not been independently verified and is, in any case, subject to negotiation, changes and modifications.
None of the Company, its shareholders or any of their respective affiliates shall be liable for the accuracy or completeness of the information or statements included in this presentation, and in no event may its content be construed as any type of explicit or implicit representation or warranty made by the Company, its shareholders or any other such person. Likewise, none of the Company, its shareholders or any of their respective affiliates shall be liable in any respect whatsoever (whether in negligence or otherwise) for any loss or damage that may arise from the use of this presentation or of any content therein or otherwise arising in connection with the information contained in this presentation. You may not copy or distribute this presentation to any person.
The Company does not undertake to publish any possible modifications or revisions of the information, data or statements contained herein should there be any change in the strategy or intentions of the Company, or occurrence of unforeseeable facts or events that affect the Company's strategy or intentions.
This presentation may contain forward-looking statements with respect to the business, investments, financial condition, results of operations, dividends, strategy, plans and objectives of the Company. By their nature, forward-looking statements involve risk and uncertainty because they reflect the Company's current expectations and assumptions as to future events and circumstances that may not prove accurate. A number of factors, including political, economic and regulatory developments in Spain and the European Union, could cause actual results and developments to differ materially from those expressed or implied in any forward-looking statements contained herein.
The information contained in this presentation does not constitute an offer or invitation to purchase or subscribe for any ordinary shares, and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
1 1H 2021 KEY HIGHLIGHTS
2 1H 2021 PRISA MEDIA
New organization structure that reinforces accountability through operational division of Media and Education
Significant operating improvement in Q2 underpinned by advertising recovery, digital growth and cost control
Strong focus on efficiencies and debt reduction
LAYING THE FOUNDATIONS OF THE NEW PRISA
| H1'20 | H1'21 | Var (%) | ||
|---|---|---|---|---|
| Unique Browsers (*) |
240M | 239M | 0% | |
| S PI |
Total Listening Hours (*) |
55M | 67M | +20% |
| K AL T GI |
Audio downloads (*) |
23M | 31M | +34% |
| DI | Subscribers (only digital) |
56k | 109k | +94% |
| Registered Users |
5M | 6M | +22% | |
| Digital Revenues |
30,7M | 41,5M | +35% | |
| €) ( PIs K |
Non Digital Revenues |
118,5M | 133,6M | +13% |
| AL CI N |
Digital Revenue Mix |
21% | 24% | +300 bp |
| A N FI |
Costs ex one offs |
166,3M | 166,7M | 0% |
| EBITDA ex one offs |
-17,1M | 8,5M | N/A | |
| • | Very good digital traffic performance during the period, considering: |
|---|---|
| ─ Digital traffic maximum during 2020 lockdown |
|
| ─ El País traffic decrease due to paywall (-21%) |
|
| ─ Increase in digital audio consumption through streaming and podcasts |
|
| • | El País is the Spanish leader in newspaper only-digital subscribers with 109k, almost 2x in 1H21 |
| • | More than 6M registered users in press and radio provide leverage to our subscription model and to improved advertising proposals |
| • | Strong digital growth with a +300bp increase in the |
| revenue mix: | |
| ─ Driven mainly by digital press (+9.8 M€)… |
|
| ─ … coupled with strong contribution of non digital revenue growth from radio (+18%) and also from offline press (+6%) |
|
| • | Good advertising behaviour |
| • | Focus on efficiency – cost base (ex severance costs) consolidated in 1H21 vs. 1H19 (-15%) |
| • | Turnaround of EBITDA ex-severance costs and of Cash Flow generated by the division |
(*) monthly average
Implement a UNIQUE and UNIFIED LEADERSHIP for all Prisa Media assets
• Our new organizational model will drive synergies, cost efficiencies and crossleverage of our asset portfolio to a next level
Leverage on our three key COMPETITIVE ADVANTAGES to get upside
• DIGITAL DRIVERS: Audio + Press
Move forward in our digital journey acting through three LINES OF ACTION
Subscription model shows strength and continues to grow with total number of students increasing by 10% to reach 1,885,000 1H 2021 figures drags a 1Q affected by pandemic specially on the didactic business and a 2Q which shows growth in all business lines
Positive evolution for the ongoing North Campaigns (Mexico and Ecuador). Planning for the physical reopening of schools has started
DIGITAL KPIS
FINANCIAL KPIS
| Total subscription students ACV Local currency % Learning systems / Private sales ex FX |
H1'20 1,714k 109M€ 50% |
H1'21 1,885k 114M€ 66% |
Var (%) +10% +4% +33% |
• Expectations to reach circa 2 Million students by year end maintained • AVC growth in local currency • Subscription model represents 66% of total Private sales and remains the main source of revenue |
|---|---|---|---|---|
| H1'20 Ex PNLD´19 |
H1'21 Ex FX |
Var (%) | • Pandemic affecting especially 1Q didactic business |
|
| Revenues | 179M€ | 154M€ | -14% | • 2Q shows growth in both private and public |
| Expenses | 153M€ | 136M€ | -11% | business |
| EBITDA | 26M€ | 18M€ | -31% | • Strong cost control efforts • FX impacting negatively revenues (-23 M€) |
| EBITDA ex sev. | 27M€ | 20M€ | -25% | & EBITDA (-5 M€) |
FOCUS ON CASH AS A PRIORITY
| FROM EBIT TO NET PROFIT | COMMENTS | ||||||
|---|---|---|---|---|---|---|---|
| H1'20 | H1'21 | Var (%) | |||||
| EBIT | -38M€ | -28M€ | +25% | ||||
| Financial result |
-37M€ | -29M€ | +22% | • Financial result improvement versus previous year as a result of lower interest on debt due |
|||
| Result from associates |
-7M€ | 0M€ | +96% | to debt reduction |
|||
| Profit before tax |
-82M€ | -58M€ | +30% | • Net profit comparison affected by 2020 impairments |
|||
| Tax Expense |
68M€ | 1M€ | -99% | ||||
| Results from discontinued |
-74M€ | -0M€ | +100% | • Comparable net profit of -56M€ compared to -48M€ previous year with lower financial |
|||
| Minority interest |
-12M€ | -2M€ | +81% | results partially offsetting the operating decline |
|||
| Net Profit | -212M€ | -56M€ | +74% | ||||
| Impairments | -164M€ | - | -100% | ||||
| Comparable Net profit |
-48M€ | -56M€ | -16% | ||||
Net Debt Evolution (Mn€)
Operating cashflow remains in line with previous year. The operating decline and higher redundancies are partially offset by lower CAPEX, lower financial expenses and the positive result of a positive VAT act. Cash position standing at €201 Mn cash with additional liquidity lines undrawn amounting to €122 Mn
MONITORING THE ENVIRONMENT WITH ADDITIONAL EFFICIENCY MEASURES IN PLACE
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.